STEP Energy Services Ltd. Announces Approval of Arrangement by Shareholders

CALGARY, Alberta--(BUSINESS WIRE)--STEP Energy Services Ltd. ("STEP" or the "Company") is pleased to announce that the shareholders of STEP (the "Shareholders"), at the special meeting of Shareholders held today (the "Meeting"), approved an arrangement (the "Arrangement") involving ARC Energy Fund 8 Canadian Limited Partnership, ARC Energy Fund 8 United States Limited Partnership, ARC Energy Fund 8 International Limited Partnership and ARC Capital 8 Limited Partnership (collectively, "ARC Energy Fund 8"), 2659160 Alberta Ltd. (the "Purchaser" and, together with ARC Energy Fund 8, the "Purchaser Parties") and STEP pursuant to a court-approved plan of arrangement under section 193 of the Business Corporations Act (Alberta) whereby the Purchaser Parties will acquire all of the issued and outstanding common shares of STEP (the "Shares"), other than those Shares already owned, controlled or directed, directly or indirectly, by ARC Energy Fund 8, ARC Energy Fund 6 Canadian Limited Partnership, ARC Energy Fund 6 United States Limited Partnership, ARC Energy Fund 6 International Limited Partnership, ARC Capital 6 Limited Partnership, or any other person controlled or managed, directly or indirectly by ARC Financial Corp. , for $5.50 in cash per Share.

The special resolution approving the Arrangement (the "Arrangement Resolution") was approved by: (i) 98.65% of the votes cast on the Arrangement Resolution by Shareholders present virtually or represented by proxy at the Meeting and entitled to vote at the Meeting; and (ii) 96.75% of the votes cast on the Arrangement Resolution by Shareholders present virtually or represented by proxy at the Meeting and entitled to vote at the Meeting, excluding for the purposes of (ii) the votes cast in respect of Shares held or controlled by persons described in items (a) through (d) of Section 8.1(2) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

The Arrangement is subject to the approval of the Court of King's Bench of Alberta (the "Court"). The anticipated hearing date for the application for the final order of the Court (the "Final Order") is December 15, 2025. Subject to obtaining the Final Order, and the satisfaction or waiver of the conditions to implementing the Arrangement as set out in the arrangement agreement dated October 17, 2025 among STEP and the Purchaser Parties, the Arrangement is anticipated to be completed on December 16, 2025. The Shares will be delisted from the Toronto Stock Exchange following the closing of the Arrangement.

FORWARD-LOOKING INFORMATION AND STATEMENTS:

This news release contains "forward-looking information" or "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking statements"). In some cases, forward-looking statements are identifiable by the terminology used, such as "may," "expect," "believe," "plan," "anticipate," "intend," "could," "estimate," "continue," "will," or similar expressions or the negative of such expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are considered forward-looking statements. Forward-looking statements in this news release, include, among other things, references, expressed or implied, to: the completion and timing of the closing of the Arrangement; the Final Order; the effects of the Arrangement; the ability of STEP and the Purchaser Parties to satisfy the other conditions to the completion of the Arrangement; the delisting of the Shares and the timing thereof; and other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this news release. The Company disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT STEP

STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.

Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin, while in the U.S., our coiled tubing services are focused in the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.

Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.